QUESTION 21 A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash. This error will cause which of the following conditions on the trial balance? A. The sum of the credits will equal the sum of the debits. B. The sum of the debits will exceed the sum of the credits by $75. C. The sum of the credits will exceed the sum of the debits by $150. D. The sum of the debits will exceed the sum of the credits by $150.

QUESTION 22 The business receives cash from a customer that is owed to the company "on account," based on services rendered to the customer previously. How does the collection of the cash affect the accounting equation? A. Assets increase; owner's equity increases. B. Assets increase; liabilities increase. C. Assets decrease; owner's equity decreases. D. One asset increases; one asset decreases

QUESTION 23 A business completes service to a client and sends out a sales invoice. The amount will be collected from the customer at a later time. Which of the following would be TRUE at the time when the invoice is sent out? A. Total assets will decrease. B. Net income will increase. C. Owner's equity will decrease. D. Total liabilities will increase.

QUESTION 24 Which of the following accounts increases with a debit? A. Cash B. Interest Payable C. Accounts Payable D. Smith, Capital

QUESTION 25 The Accounts Receivable account of Nuptials Inc. is shown below. Accounts Receivable Dr Cr 26,000 3,500 5,000 Calculate the ending balance of the account. A. $33,500 debit B. $31,000, debit C. $3,500, credit D. $27,500, debit

QUESTION 26 The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 Martinez invested $9,000 cash in his new design services business. Mar. 2 Paid the first month's rent of $800. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000. Mar. 4 Purchased office supplies for $750 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the balance in Cash? A. $13,250 B. $12,450 C. $15,450 D. $14,000

QUESTION 27 Which of the following sequences states the order in which a trial balance lists accounts? A. Equity Assets Liabilities B. Liabilities Assets Equity C. Assets Equity Liabilities D. Assets Liabilities Equity

QUESTION 28 Which of the following statements is FALSE? A. A trial balance shows total amounts for assets, liabilities, and equity. B. A trial balance is created before the balance sheet is prepared. C. A trial balance presents data in debit and credit format, but a balance sheet does not. D. A trial balance shows total debits and total credits.

QUESTION 29 A promise received from a business's customers to pay for goods and services that they received from the business is called a(n): A. revenue. B. account receivable. C. account payable. D. expense.

QUESTION 30 You can evaluate the economic resources, debt, and overall financial position of a company in which of the following financial statements? A. Income statement B. Balance sheet C. Statement of owner's equity D. Statement of cash flows

QUESTION 31 A book holding all of the accounts is called the: A. income statement. B. journal. C. ledger. D. balance sheet.

QUESTION 32 Which of the following groups of accounts BOTH normally have a debit balance? A. Assets and Liabilities B. Liabilities and Owner's equity C. Revenues and Expenses D. Assets and Expenses

QUESTION 33 A business buys $500 of supplies on account. Which account is debited? A. Supplies B. Cash C. Service revenue D. Accounts payable